Tensions rumble on as Birmingham bins strike costs laid bare
Tensions between Birmingham City Council and Unite the union continue to rumble on after the bins strike costs were laid bare in a report.
The two parties have been unable to reach a resolution to their dispute, which was initially triggered by the loss of the Waste Recycling and Collection Officer role.
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The past year has seen striking workers claim they face a pay cut of £8,000 – a figure the council has disputed.
The Labour-run council meanwhile insisted a fair offer had been made before negotiations came to an end last summer, with the authority saying it had ‘reached the absolute limit of what we can offer’ amid equal pay fears.
As well as causing disruption for residents and attracting unwanted headlines, the strike has inflicted costs of several millions on the council, which declared itself effectively bankrupt back in September 2023.
A recent report by the council’s director of finance Carol Culley has revealed that the forecast one-off and direct costs of the strike will total £14.6m if it continues to the end of March.
These costs include street cleansing, security costs and additional support to tackle the accumulation of waste, and will be met using a combination of the council’s reserves and corporate underspends.
The impact of the strike has contributed to other costs too, including:
Lost income from garden waste being suspended is estimated to be £4.4m. Recommended to be met from reserves.
£4.2m, which includes income loss from bulky waste, commercial waste and loss of paper income.
The delay of the transformation of the street scene services, forecast to be at £10.2m. The council says: “A separate transformation board has been
established and a report will be bought forward on the transformation plans
for the service alongside a revised financial plan.”
The report also acknowledged that the bins strike will have an impact on the council’s ability to make savings by transforming the waste service – a crucial project which was pushed back.
It will see collections of household rubbish move to fortnightly and weekly food waste collections introduced, as well as a second recycling bin specifically for recycling paper and cardboard.
The transformation programme is now planned to be rolled out this summer – regardless of whether the strike is ongoing.
On the impact on these savings, the report said: “The directorate have been asked to identify alternative cost savings and mitigations where possible, but it is unlikely that the risks can be fully offset.”
‘Costs are mounting’
Amid this financial turbulence, Unite this month argued that a “fair deal for the bin workers” would cost much less.
The union has also claimed that ‘ballpark deal’ had been reached last year after hours of discussions but added this figure could not get past the government-appointed commissioners overseeing the council’s financial recovery.
Unite general secretary Sharon Graham said: “While council officials have been repeatedly refusing to engage in negotiations with Unite, the council has squandered millions of council taxpayers’ cash.
“Costs are mounting every day.
“The council now needs to get in the room because these strikes will not end until there is fair deal for Birmingham’s bin workers.”
But Coun Majid Mahmood, the cabinet member for environment, responded by describing Unite’s demand as “unjustified”.
“The council has engaged in negotiations with Unite,” he said. “While we remain committed to reaching a negotiated settlement, Unite has rejected our fair and reasonable offers.
“The value of the lump sums being quoted as a ‘ballpark deal’ by Unite has never been offered.
“Unite continue to demand significant lump sums which are simply unjustifiable and do not represent best value for the council and the citizens of Birmingham.
“We have to protect the public purse.”
Coun Mahmood went on to claim that the council has invited Unite on multiple occasions to make a ‘proposal’ to end the strike.
“We would fully and carefully consider [any proposal] but they have declined to do so thus far,” he said.
“Our doors remain open for Unite to put forward constructive suggestions to resolve this dispute and we want those taking strike action to return to work so we can continue delivering the waste services that the people of Birmingham expect and deserve.
“We know residents are frustrated and we are sorry for the inconvenience and appreciate their patience.”
